Sierra Company manufactures woven blankets and accounts for product costs using process costing. The following information is available regarding its May inventories.

	Beginning Inventory			Ending Inventory
Raw materials inventory	$	52,000		$	106,000
Goods in process inventory		414,000			531,000
Finished goods inventory		602,000			469,001

The following additional information describes the company's production activities for May.

Raw materials purchases (on credit)	$	280,000
Factory payroll cost (paid in cash)		1,556,000
Other overhead cost (Other Accounts credited)		74,500
Materials used
Direct	$	158,000
Indirect		68,000
Labor used
Direct	$	790,000
Indirect		766,000
Overhead rate as a percent of direct labor		115	%
Sales (on credit)	$	3,500,000

The predetermined overhead rate was computed at the beginning of the year as 115% of direct labor cost.

1.	Compute the cost of products transferred from production to finished goods and cost of goods sold.

Raw Materials:

Goods in Process:

Factory Payroll

Finished Goods

Factory Overhead

Income statement (partial):